Evening all
I'm one of a group currently setting up. We've heard of a lot of other groups who go Ltd, and get VAT registered in order to claim the VAT back on things like fuel, hangarage, maintenance etc etc.. In order to do so, the company obviously has to do some business and charge customers VAT, and as one of us is a CPL we'll be doing some aerial photo and pleasure flight work.
I understand that the capital we put in to set everything up, buy the aircraft etc is just that, share capital and investment in the company. The thing I'm unsure of is the group members (directors) monthlies. Do we have to charge ourselves VAT on them? That would be somewhat of a downer
Sorry if this sounds like a lame question, I just don't know much about the world of companies and tax, and we don't have an accountant yet. If anyone has some easy answers to the tax basics, or some handy links which might enlighten me, I'd much appreciate it.